Daily Current Affairs (DCA) 07 May, 2026

Current Affairs
-May 7, 2026

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Daily Current Affairs Quiz
07 May, 2026

Table of Contents

National Affairs

1. Understanding Inequality in India’s Growth Story

Context:

This analysis examines India’s evolving economic landscape, specifically questioning the official narrative that inequality has significantly eased. Using the Household Consumer Expenditure Survey (HCES 2023-24), the article highlights a growing disconnect between policy assumptions and the lived reality of rural and informal workers. As India transitions toward new frameworks like the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (replacing MGNREGA), the data suggests that disparities in non-food spending and urban-rural gaps remain starkly high.

Key Highlights of the Report

Higher Gini Index: HCES 2023-24 estimates India’s consumption inequality at 0.29, higher than the World Bank’s estimate of 0.25.
Urban-Rural Disparity: The urban sector is significantly more unequal than the rural sector, with the top 10% of urban dwellers spending 9 times more than the bottom 10% of rural residents.
Non-Food Dominance: Inequality is much sharper in non-food expenditure (services, durables) than in food expenditure.
Superrich “Invisible”: NSS surveys likely underestimate inequality as they fail to capture the topmost wealth bracket (the superrich).
Class Gains: Since the 1980s, urban managers and professionals have gained disproportionately, while informal and agricultural workers have lagged.

News Analysis

Q1: What is the significance of the 0.29 Gini index found in the HCES 2023-24?

A: It indicates that consumption inequality is higher than previously thought. A higher Gini index suggests that the benefits of India’s “consumption boom” are concentrated among fewer people, contradicting the official stance that inequality is no longer a major concern.

Q2: Why is “non-food expenditure” a better indicator of inequality in this report?

A: While food consumption has a natural upper limit (even the rich can only eat so much), non-food spending (luxury goods, education, healthcare, travel) is theoretically infinite. The data shows that the top 10% in cities accounts for 27% of all non-food spending, showing a massive concentration of purchasing power.

Q3: What is the risk of replacing MGNREGA with the new 2025 Bill based on current inequality data?

A: The concern is that if the new Bill is designed under the false premise that rural distress has vanished, it may provide inadequate support. With rural MPCE far below the national average, removing a guaranteed safety net could lead to unintended welfare crises.

Background Concepts

Q1: What is the Lorenz Curve and its relation to the Gini Index?

A: The Lorenz Curve is a graphical representation of wealth or income distribution. The Gini Index is the mathematical ratio derived from this curve. The further the curve bows away from the “line of perfect equality,” the higher the Gini Index and the greater the inequality.

Shutterstock

Q2: What are “Deciles” in economic surveys?

A: Deciles involve dividing a population into ten equal parts (10% each) based on their income or expenditure. This allows researchers to compare the “top 10%” (richest) directly against the “bottom 10%” (poorest) to measure the gap in living standards.

Q3: What is “Debt-Led Consumption”?

A: This occurs when households maintain their spending levels by taking on debt (loans, credit) rather than through an increase in actual earnings. The article warns that India’s consumption growth might be fragile if it is being fueled by borrowing rather than rising real wages.

Multiple Choice Questions (MCQs)

1. Which survey serves as the primary basis for the inequality analysis presented in the article?

A) Periodic Labour Force Survey (PLFS)

B) National Family Health Survey (NFHS)

C) Household Consumer Expenditure Survey (HCES) 2023-24

D) Multi-dimensional Poverty Index (MPI)

E) Annual Survey of Industries (ASI)

2. According to the report, the top 10% of the urban population contributes what percentage of total non-food expenditure?

A) 10%

B) 27%

C) 50%

D) 73%

E) 90%

3. The term “Between-group inequality” in this context refers to disparities found between:

A) Different members of the same household

B) Different individuals within the same decile

C) Different socio-economic classes or rural vs. urban sectors

D) Different states’ GDP growth rates

E) Male and female workers in the same factory

4. Vamsi Vakulabharanam’s research suggests that which group has “lagged markedly behind” since the 1980s?

A) Urban managers

B) Professionals

C) Large-scale industrial owners

D) Rural small farmers and agricultural labourers

E) Tech entrepreneurs

Answers: 1-C, 2-B, 3-C, 4-D

Exam Relevance

Subject Area	Relevance and Application
Indian Economy (UPSC GS-3)	Critical for questions on “Inclusive Growth,” “Poverty,” and “Resource Mobilization.”
Social Justice (UPSC GS-2)	Impact of welfare policy changes (MGNREGA replacement) on vulnerable populations.
Essay / Ethics	Useful for discussing the trade-offs between “Growth vs. Equity” in a developing nation.
Statistics & Surveys	Understanding the role of MoSPI, NSSO, and the methodology of Gini/MPCE.
State PSC (JPSC/BPSC)	High relevance for questions regarding rural distress and state-level social security.

2. Discovery of Atmosphere on TNO (612533) 2002 XV93

Source

Context:

Astronomers have made a landmark discovery in the outer reaches of our solar system by detecting a thin atmosphere around the Trans-Neptunian Object (TNO) (612533) 2002 XV93. Located in the icy Kuiper Belt, this object is now only the second TNO—after Pluto—confirmed to possess a gaseous envelope. The discovery, made via stellar occultation by telescopes in Japan, challenges existing models of how small, icy bodies (with a diameter of only 500 km) can retain atmospheres. This finding provides a “time capsule” look into the chemical composition of the early solar system from 4.5 billion years ago.

Key Highlights

Significant Milestone: Only the second TNO known to have an atmosphere (Pluto was the first).
Method of Discovery: Detected using Stellar Occultation (observing the object pass in front of a distant star).
Physical Specs: Diameter of ~500 km; roughly 3.7 billion miles (39.6 AU) from the Sun.
Atmospheric Density: Extremely thin; 5 to 10 million times thinner than Earth’s atmosphere.
Chemical Composition: Likely composed of nitrogen, methane, or carbon monoxide.
Hypothesized Origins: Possibly maintained by cryovolcanism (icy volcanic venting) or recent impact-induced outgassing.

Background Concepts

Q1: What is the difference between a TNO and a Dwarf Planet?

A: A TNO is any object orbiting beyond Neptune. A Dwarf Planet is a specific sub-category that must be large enough to be rounded by its own gravity (like Pluto or Eris). Not all TNOs are dwarf planets; 2002 XV93 is a TNO but too small to be a dwarf planet.

Q2: What is Cryovolcanism?

A: Unlike Earth’s volcanoes that spew molten rock, cryovolcanoes erupt “volatiles” such as water, ammonia, or methane ice. On super-cold bodies, these act like lava, potentially releasing gases that form a thin atmosphere.

Q3: Where is the Kuiper Belt located?

A: It is a doughnut-shaped region extending from the orbit of Neptune (30 AU) to approximately 50 AU from the Sun. It is the home of Pluto and short-period comets.

Multiple Choice Questions (MCQs)

1. With reference to the TNO (612533) 2002 XV93, which of the following is correct?

A) It is the largest object in the Oort Cloud.

B) It is the first TNO discovered to have an atmosphere.

C) It was observed using ground-based telescopes in Japan.

D) It is primarily composed of molten silicate rocks.

E) Its atmosphere is thicker than that of Mars.

2. The technique of “Stellar Occultation” is primarily used by astronomers to:

A) Measure the temperature of the Sun.

B) Detect the presence of black holes in the galactic center.

C) Determine the size, shape, and atmosphere of distant small bodies.

D) Track the movement of tectonic plates on Earth.

E) Identify the chemical signature of distant galaxies.

3. Which of the following is NOT a recognized dwarf planet?

A) Ceres

B) Pluto

C) Eris

D) Makemake

E) 2002 XV93

4. An Astronomical Unit (AU) represents the average distance between:

A) Neptune and the Kuiper Belt

B) The Earth and the Moon

C) The Sun and the Earth

D) The Milky Way and Andromeda

E) Pluto and the Sun

Answers: 1-C, 2-C, 3-E, 4-C

Exam Relevance

Subject Area	Relevance and Application
Science & Tech (UPSC GS-3)	Significant for topics on Space Exploration and Solar System formation.
Geography (Physical)	Understanding the structure of the outer solar system (Kuiper Belt vs. Oort Cloud).
Current Affairs	First-of-its-kind discovery in observational astronomy.
State PSC / SSC	High probability for questions on IAU classifications, AUs, and planetary definitions.
Scientific Exams	Focus on the mechanics of cryovolcanism and stellar occultation methods.

3. Incentive Scheme for Promotion of Critical Mineral Recycling

Context:

The Ministry of Mines has approved 58 companies as eligible participants under the Incentive Scheme for Promotion of Critical Mineral Recycling, a dedicated financial intervention under the National Critical Mineral Mission (NCMM). India currently imports over 80% of key critical minerals like lithium, cobalt, and nickel — minerals essential for clean energy (EV batteries, solar, wind), defence systems, semiconductors, and advanced manufacturing.

Key Highlights

Scheme: Incentive Scheme for Promotion of Critical Mineral Recycling.
Parent mission: National Critical Mineral Mission (NCMM).
Notified on: 2 October 2025.
Operational tenure: FY 2025–26 to FY 2030–31 (6 years).
Governing ministry: Ministry of Mines, Government of India.
Total outlay: ₹1,500 crore.
Recently approved: 58 companies as eligible participants.
Capex subsidy: 20% for on-time projects; reduced to 17% or 14% for delayed ones.
Opex subsidy: Disbursed in stages — 40% in Year 2 and 60% in Year 5 — linked to incremental sales over the base year (FY 2025-26).
Hybrid option: Beneficiaries may combine Capex and Opex incentives within prescribed ceilings.
Beneficiary categories:
- Group A — Large firms (Global Manufacturing Revenue ≥ ₹200 crore); ceiling of ₹50 crore.
- Group B — Smaller firms (GMR < ₹200 crore); ceiling of ₹25 crore.
Target waste streams: E-waste, spent lithium-ion batteries (LIBs), permanent magnets, and catalytic converters.
Eligible projects: Both Greenfield (new) and Brownfield (modernisation) projects by registered Indian recyclers.

About the News

What is the Incentive Scheme for Promotion of Critical Mineral Recycling?

It is a financial-incentive scheme under the National Critical Mineral Mission (NCMM), designed to support Indian companies that extract and refine critical minerals from secondary sources such as e-waste, spent batteries, and industrial scrap.

When was the scheme notified, and for how long is it valid?

It was notified on 2 October 2025 and will run for 6 years, from FY 2025–26 to FY 2030–31.

What is the recent development?

The Ministry of Mines has approved 58 companies as eligible participants under the scheme.

What is the total financial outlay?

₹1,500 crore over the scheme’s tenure.

What are the two main types of incentives offered?

A Capex (Capital Expenditure) subsidy — up to 20% on eligible capital spending for on-time projects (17% or 14% if delayed) — and an Opex (Operating Expenditure) subsidy — disbursed in stages (40% in Year 2 and 60% in Year 5), linked to incremental sales over the base year. A Hybrid option combining the two is also available.

Who are the beneficiaries under Group A and Group B?

Group A covers large firms with Global Manufacturing Revenue ≥ ₹200 crore (ceiling ₹50 crore). Group B covers smaller firms with GMR < ₹200 crore (ceiling ₹25 crore).

Which waste streams are targeted?

E-waste, spent lithium-ion batteries (LIBs), permanent magnets, and catalytic converters — collectively called urban mining sources.

Who is eligible to apply?

Registered Indian recyclers, including those undertaking Greenfield (entirely new) projects and Brownfield (expansion or modernisation) projects.

What is the strategic objective of the scheme?

To strengthen India’s critical mineral security, reduce import dependence (currently over 80% for minerals like lithium, cobalt, and nickel), and build a robust circular economy in the mineral sector — vital for clean energy, defence, and advanced manufacturing.

Background Concepts

What are critical minerals?

Critical minerals are minerals that are economically important for key sectors — like clean energy, electronics, defence, and advanced manufacturing — but face high supply risk due to concentration of reserves and processing in a few countries. Examples include lithium, cobalt, nickel, copper, rare earth elements (REEs), graphite, vanadium, and silicon.

What is India’s official Critical Minerals List?

In June 2023, the Ministry of Mines released a list of 30 critical minerals for India, including lithium, cobalt, nickel, titanium, tellurium, gallium, indium, tungsten, niobium, and several REEs — minerals identified as essential for India’s energy transition and economic security.

What is the National Critical Mineral Mission (NCMM)?

A mission launched by the Government of India to ensure long-term availability of critical minerals through domestic exploration, mining, refining, recycling, and overseas acquisition. It coordinates efforts across ministries and PSUs to secure mineral supply chains.

What is “urban mining”?

The process of recovering valuable raw materials — particularly metals and critical minerals — from used products and waste streams (e-waste, batteries, vehicles, industrial scrap), as opposed to extracting them from primary geological deposits.

Why are critical minerals geopolitically important?

Because their reserves and processing are concentrated in a few countries — for instance, China dominates rare earths and battery-mineral processing, Australia leads in lithium mining, and the DRC dominates cobalt. This concentration creates strategic supply-chain vulnerabilities for import-dependent countries like India.

What is a circular economy?

An economic model in which resources are kept in use for as long as possible — through reuse, recycling, refurbishment, and remanufacturing — minimising waste and reducing dependence on fresh raw materials.

What is KABIL?

Khanij Bidesh India Ltd. (KABIL) is a joint-venture company of three central PSUs — NALCO, HCL, and MECL — set up in 2019 to acquire and develop critical and strategic mineral assets abroad to ensure consistent supply for the Indian economy.

What is the Minerals Security Partnership (MSP)?

A multilateral initiative led by the United States and partner countries (including India, Australia, Japan, the EU, and others) to strengthen critical mineral supply chains globally, reduce concentration risks, and accelerate responsible mineral development.

What are lithium-ion batteries (LIBs) and why are they critical?

LIBs are rechargeable batteries widely used in mobile phones, laptops, EVs, and energy-storage systems. Their large-scale demand — driven by the energy transition and EV adoption — has made minerals like lithium, cobalt, nickel, and graphite strategically vital.

What is the difference between Greenfield and Brownfield projects?

Greenfield projects are new investments built from scratch on previously undeveloped sites. Brownfield projects are expansions or modernisations of existing facilities, typically faster to set up and lower risk.

Practice MCQs

Q1. With reference to the Incentive Scheme for Promotion of Critical Mineral Recycling, consider the following statements:

It is implemented under the National Critical Mineral Mission (NCMM).
It has a total financial outlay of ₹1,500 crore for six years.
It is administered by the Ministry of Environment, Forest and Climate Change.
The scheme runs from FY 2025–26 to FY 2030–31.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. With reference to the incentive structure under the scheme, consider the following statements:

A Capex subsidy of 20% is provided for projects that start production on time.
The Opex subsidy is disbursed entirely in the first year of operation.
Group A beneficiaries have a total subsidy ceiling of ₹50 crore.
The scheme allows a hybrid option combining Capex and Opex support.

Which of the above are correct? (a) 1, 3 and 4 only (b) 1, 2 and 3 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q3. Consider the following statements about critical minerals in India:

India released its first official Critical Minerals List of 30 minerals in 2023.
Lithium, cobalt, and nickel are among the critical minerals identified.
India imports over 80% of its requirements of several critical minerals.
KABIL is a joint venture aimed at acquiring critical mineral assets within India.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 2 and 4 only (c) 2, 3 and 4 only (d) 1 and 4 only (e) All four

Q4. Consider the following statements about “urban mining” and the circular economy:

Urban mining refers to recovering valuable materials from primary geological deposits.
The scheme targets recycling of e-waste, spent lithium-ion batteries, permanent magnets, and catalytic converters.
Both Greenfield and Brownfield projects are eligible under the scheme.
A circular economy aims to maximise resource extraction from primary sources.

Which of the above are correct? (a) 1 and 4 only (b) 1, 2 and 3 only (c) 2 and 3 only (d) 1, 3 and 4 only (e) All four

Answer Key

(c) — Statements 1, 2, 4 are correct. Statement 3 is wrong; the scheme is administered by the Ministry of Mines, not the Ministry of Environment, Forest and Climate Change.
(a) — Statements 1, 3, 4 are correct. Statement 2 is wrong; the Opex subsidy is disbursed in two stages — 40% in Year 2 and 60% in Year 5 — not entirely in the first year.
(a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; KABIL is set up to acquire critical mineral assets abroad, not within India.
(c) — Statements 2 and 3 are correct. Statement 1 is wrong; urban mining refers to recovering materials from secondary/waste sources, not primary geological deposits. Statement 4 is wrong; a circular economy seeks to minimise extraction from primary sources and maximise reuse and recycling.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper III — Economy, Mineral resources, Government Schemes
UPSC Mains	GS Paper III — Mobilisation of resources, Mineral security, Energy security, Conservation
UPSC Mains	GS Paper II — International Relations (Critical mineral diplomacy, MSP)
BPSC / State PCS	Indian Economy, Environment, Current Affairs
Banking (RBI Gr B, NABARD)	ESI / Economic and Social Issues — Mineral economy, EV transition

4. National Critical Mineral Mission (NCMM)

Context:

Key Highlights

Scheme: Incentive Scheme for Promotion of Critical Mineral Recycling.
Parent mission: National Critical Mineral Mission (NCMM).
Notified on: 2 October 2025.
Operational tenure: FY 2025–26 to FY 2030–31 (6 years).
Governing ministry: Ministry of Mines, Government of India.
Total outlay: ₹1,500 crore.
Recently approved: 58 companies as eligible participants.
Capex subsidy: 20% for on-time projects; reduced to 17% or 14% for delayed ones.
Opex subsidy: Disbursed in stages — 40% in Year 2 and 60% in Year 5 — linked to incremental sales over the base year (FY 2025-26).
Hybrid option: Beneficiaries may combine Capex and Opex incentives within prescribed ceilings.
Beneficiary categories:
- Group A — Large firms (Global Manufacturing Revenue ≥ ₹200 crore); ceiling of ₹50 crore.
- Group B — Smaller firms (GMR < ₹200 crore); ceiling of ₹25 crore.
Target waste streams: E-waste, spent lithium-ion batteries (LIBs), permanent magnets, and catalytic converters.
Eligible projects: Both Greenfield (new) and Brownfield (modernisation) projects by registered Indian recyclers.

About the News (Q&A)

What is the Incentive Scheme for Promotion of Critical Mineral Recycling?

When was the scheme notified, and for how long is it valid?

It was notified on 2 October 2025 and will run for 6 years, from FY 2025–26 to FY 2030–31.

What is the recent development?

The Ministry of Mines has approved 58 companies as eligible participants under the scheme.

What is the total financial outlay?

₹1,500 crore over the scheme’s tenure.

What are the two main types of incentives offered?

Who are the beneficiaries under Group A and Group B?

Group A covers large firms with Global Manufacturing Revenue ≥ ₹200 crore (ceiling ₹50 crore). Group B covers smaller firms with GMR < ₹200 crore (ceiling ₹25 crore).

Which waste streams are targeted?

E-waste, spent lithium-ion batteries (LIBs), permanent magnets, and catalytic converters — collectively called urban mining sources.

Who is eligible to apply?

Registered Indian recyclers, including those undertaking Greenfield (entirely new) projects and Brownfield (expansion or modernisation) projects.

What is the strategic objective of the scheme?

Background Concepts (Q&A)

What are critical minerals?

What is India’s official Critical Minerals List?

What is the National Critical Mineral Mission (NCMM)?

What is “urban mining”?

Why are critical minerals geopolitically important?

What is a circular economy?

What is KABIL?

What is the Minerals Security Partnership (MSP)?

What are lithium-ion batteries (LIBs) and why are they critical?

What is the difference between Greenfield and Brownfield projects?

Practice MCQs

Q1. With reference to the Incentive Scheme for Promotion of Critical Mineral Recycling, consider the following statements:

It is implemented under the National Critical Mineral Mission (NCMM).
It has a total financial outlay of ₹1,500 crore for six years.
It is administered by the Ministry of Environment, Forest and Climate Change.
The scheme runs from FY 2025–26 to FY 2030–31.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. With reference to the incentive structure under the scheme, consider the following statements:

A Capex subsidy of 20% is provided for projects that start production on time.
The Opex subsidy is disbursed entirely in the first year of operation.
Group A beneficiaries have a total subsidy ceiling of ₹50 crore.
The scheme allows a hybrid option combining Capex and Opex support.

Which of the above are correct? (a) 1, 3 and 4 only (b) 1, 2 and 3 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q3. Consider the following statements about critical minerals in India:

India released its first official Critical Minerals List of 30 minerals in 2023.
Lithium, cobalt, and nickel are among the critical minerals identified.
India imports over 80% of its requirements of several critical minerals.
KABIL is a joint venture aimed at acquiring critical mineral assets within India.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 2 and 4 only (c) 2, 3 and 4 only (d) 1 and 4 only (e) All four

Q4. Consider the following statements about “urban mining” and the circular economy:

Urban mining refers to recovering valuable materials from primary geological deposits.
The scheme targets recycling of e-waste, spent lithium-ion batteries, permanent magnets, and catalytic converters.
Both Greenfield and Brownfield projects are eligible under the scheme.
A circular economy aims to maximise resource extraction from primary sources.

Which of the above are correct? (a) 1 and 4 only (b) 1, 2 and 3 only (c) 2 and 3 only (d) 1, 3 and 4 only (e) All four

Answer Key

(c) — Statements 1, 2, 4 are correct. Statement 3 is wrong; the scheme is administered by the Ministry of Mines, not the Ministry of Environment, Forest and Climate Change.
(a) — Statements 1, 3, 4 are correct. Statement 2 is wrong; the Opex subsidy is disbursed in two stages — 40% in Year 2 and 60% in Year 5 — not entirely in the first year.
(a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; KABIL is set up to acquire critical mineral assets abroad, not within India.
(c) — Statements 2 and 3 are correct. Statement 1 is wrong; urban mining refers to recovering materials from secondary/waste sources, not primary geological deposits. Statement 4 is wrong; a circular economy seeks to minimise extraction from primary sources and maximise reuse and recycling.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper III — Economy, Mineral resources, Government Schemes
UPSC Mains	GS Paper III — Mobilisation of resources, Mineral security, Energy security, Conservation
UPSC Mains	GS Paper II — International Relations (Critical mineral diplomacy, MSP)
BPSC / State PCS	Indian Economy, Environment, Current Affairs
Banking (RBI Gr B, NABARD)	ESI / Economic and Social Issues — Mineral economy, EV transition

5. Supreme Court (Number of Judges) Amendment Bill, 2026

Context:

The Union Cabinet has approved the Supreme Court (Number of Judges) Amendment Bill, 2026, proposing to raise the sanctioned strength of the Supreme Court of India from 33 to 37 judges (excluding the Chief Justice of India) — taking the total bench size, including the CJI, to 38. The Constitution originally provided for a Chief Justice and seven other judges under Article 124(1), with Parliament empowered to increase this number through ordinary legislation. Successive amendments have steadily expanded the bench in step with the growing case-load.

Key Highlights

Legislative measure: Supreme Court (Number of Judges) Amendment Bill, 2026 — amends the Supreme Court (Number of Judges) Act, 1956.
Strength change: From 33 + 1 (CJI) = 34 to 37 + 1 (CJI) = 38.
Constitutional basis: Article 124(1) — originally CJI + 7 judges; Parliament empowered to increase by law.
Procedure: Requires passage by both Houses of Parliament with a simple majority, followed by Presidential assent.
Triggering input: Typically a request from the CJI to the government citing backlog and bench-strength constraints.
Appointment route: Names recommended by the Supreme Court Collegium (CJI + 4 senior-most judges) → Union Ministry of Law and Justice → PM → President of India appoints under Article 124(2).
Historical evolution:
- 1950: 7 + 1 = 8.
- 1956: 10 + 1 = 11.
- 2026 (proposed): 37 + 1 = 38.
Significance: More benches, faster case disposal, and greater capacity for Constitution Benches without disrupting routine work.

About the News

What did the Union Cabinet approve?

The introduction of the Supreme Court (Number of Judges) Amendment Bill, 2026, to raise the sanctioned strength of the Supreme Court.

What is the proposed change in the strength of the Supreme Court?

From the current 33 judges (excluding the CJI) to 37 judges. Including the CJI, the bench size will rise to 38.

Which Act is being amended?

The Supreme Court (Number of Judges) Act, 1956, which currently lays down the maximum number of judges in the Supreme Court.

Under which constitutional provision is this change made?

Under Article 124(1) of the Constitution, which provides for the establishment of the Supreme Court and authorises Parliament to increase the number of judges by law.

What was the originally prescribed strength of the Supreme Court?

The Constitution originally provided for a Chief Justice and seven other judges — a total of 8.

How is the expenditure on the Supreme Court funded?

Salaries, allowances, and other expenses of judges are charged on the Consolidated Fund of India, meaning they are not subject to a vote in Parliament. This protects judicial financial independence.

What procedure is followed to increase the strength?

A bill is introduced in Parliament, passed by both Houses by a simple majority, and given the President’s assent. It does not require a constitutional amendment because Article 124(1) already empowers Parliament to do so by ordinary law.

Who proposes such an increase typically?

Usually the Chief Justice of India (CJI), citing case backlog and the need for more benches.

How are the additional judges appointed?

Through the Memorandum of Procedure (MoP): The Supreme Court Collegium (CJI + 4 senior-most judges) recommends names → Union Ministry of Law and Justice → Prime Minister → President of India formally appoints under Article 124(2).

Why is this increase significant?

The Supreme Court faces a backlog of tens of thousands of cases. More judges allow more benches, faster disposal, and better functioning of Constitution Benches (which require at least five judges) without paralysing the court’s regular appellate work.

Background Concepts (Q&A)

What is the Supreme Court of India?

The Supreme Court is the apex judicial body of India, established under Article 124 of the Constitution. It came into existence on 28 January 1950, replacing the Federal Court of India. It is the final court of appeal and the guardian of the Constitution.

What is the constitutional structure of the Supreme Court?

The Supreme Court consists of the Chief Justice of India and other judges as Parliament may by law prescribe. The Constitution originally provided for the CJI and seven other judges.

What are the jurisdictions of the Supreme Court?

The Supreme Court has original jurisdiction (Article 131 — disputes between Centre and States), appellate jurisdiction (Articles 132–134), writ jurisdiction (Article 32), advisory jurisdiction (Article 143), and review and curative jurisdictions under its inherent powers.

What is the Collegium system?

The Collegium is a system for the appointment and transfer of judges of the Supreme Court and High Courts, evolved through judicial pronouncements (the Three Judges Cases — 1981, 1993, and 1998). It consists of the CJI and the four senior-most judges of the Supreme Court for SC appointments, and the CJI plus two senior-most judges for HC appointments.

What is the Memorandum of Procedure (MoP)?

A document that lays down the procedure for the appointment and transfer of judges to the higher judiciary, prepared in consultation between the executive and the judiciary.

What was the NJAC?

The National Judicial Appointments Commission (NJAC) was created by the 99th Constitutional Amendment, 2014, to replace the Collegium system with a body comprising the CJI, two senior judges, the Law Minister, and two eminent persons. The Supreme Court struck it down in 2015 as unconstitutional, holding that judicial primacy in appointments was part of the basic structure.

What is “Charged Expenditure”?

Expenditure that is automatically incurred from the Consolidated Fund of India and is not subject to a vote in Parliament. It includes salaries of the President, Speaker, judges of the Supreme Court and High Courts, CAG, and others — designed to insulate them from political pressure.

What is a Constitution Bench?

Under Article 145(3), any case involving a substantial question of law as to the interpretation of the Constitution must be heard by a bench of at least five judges. Such benches are called Constitution Benches.

What is the difference between Original, Appellate, and Advisory Jurisdiction?

Original — cases that originate in the Supreme Court directly (e.g., disputes between Centre and States). Appellate — appeals from lower courts (HCs, tribunals). Advisory — opinions sought by the President under Article 143.

Why is judicial pendency a concern in India?

Pendency runs into millions of cases across courts. As of recent years, the Supreme Court alone has a pendency of around 80,000+ cases, and total pendency across all courts exceeds 5 crore — affecting access to justice and rule of law.

Practice MCQs

Q1. With reference to the Supreme Court (Number of Judges) Amendment Bill, 2026, consider the following statements:

It seeks to raise the sanctioned strength of the Supreme Court from 33 to 37 judges, excluding the CJI.
It amends the Supreme Court (Number of Judges) Act, 1956.
The increase requires a constitutional amendment.
With the CJI included, the total bench strength will be 38.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. With reference to Article 124 of the Constitution, consider the following statements:

It deals with the establishment and constitution of the Supreme Court.
The Constitution originally provided for a CJI and seven other judges.
Parliament is empowered to increase the number of judges through a constitutional amendment.
Judges are appointed by the President under Article 124(2).

Which of the above are correct? (a) 1, 2 and 4 only (b) 1, 2 and 3 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q3. With reference to the appointment of Supreme Court judges, consider the following statements:

The Supreme Court Collegium consists of the CJI and the four senior-most judges of the Supreme Court.
The Memorandum of Procedure governs the process of appointment.
The National Judicial Appointments Commission (NJAC) was struck down by the Supreme Court in 2015.
The President appoints judges of the Supreme Court under Article 217 of the Constitution.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q4. Consider the following statements about the Supreme Court of India:

Salaries and allowances of Supreme Court judges are charged on the Consolidated Fund of India.
A Constitution Bench must consist of at least five judges.
The Supreme Court came into existence on 28 January 1950.
The Supreme Court has only appellate jurisdiction.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 2 and 4 only (c) 2 and 3 only (d) 1 and 4 only (e) All four

Answer Key

(c) — Statements 1, 2, 4 are correct. Statement 3 is wrong; the increase requires only an ordinary law (simple majority of Parliament + President’s assent), not a constitutional amendment, since Article 124(1) already empowers Parliament to do so by law.
(a) — Statements 1, 2, 4 are correct. Statement 3 is wrong; Parliament can increase the number of judges through an ordinary law, not a constitutional amendment.
(a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; Supreme Court judges are appointed under Article 124(2). Article 217 deals with the appointment of High Court judges.
(a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the Supreme Court has original, appellate, writ, advisory, review, and curative jurisdictions — not just appellate.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper II — Indian Polity (Supreme Court, Articles 124–147, Collegium, NJAC)
UPSC Mains	GS Paper II — Judiciary, Separation of Powers, Judicial Reforms, Pendency
UPSC Mains	Essay — Judicial Reforms, Access to Justice
BPSC / State PCS	Indian Polity, Constitution, Current Affairs
Judicial Services	Core area — SC structure, jurisdiction, appointments
Banking (RBI Gr B, NABARD)	Static GK on Constitutional bodies
SSC / Insurance / Railway	Static GK on Supreme Court, Articles, Collegium

6. Mission for Cotton Productivity

Context:

The Union Cabinet has approved the Mission for Cotton Productivity with an outlay of ₹5,659.22 crore, a major intervention aimed at reversing stagnation in India’s cotton sector. India is the world’s largest producer of cotton, but its lint productivity (around 440 kg/hectare) lags significantly behind global leaders like China, Brazil, the US, and Australia. The Mission is built on the government’s 5F Vision (Farm → Fibre → Factory → Fashion → Foreign) and is jointly implemented by the Ministry of Agriculture & Farmers Welfare and the Ministry of Textiles.

Key Highlights

Scheme: Mission for Cotton Productivity.
Outlay: ₹5,659.22 crore.
Vision framework: 5F Vision — Farm to Fibre to Factory to Fashion to Foreign.
Implementation: Jointly by the Ministry of Agriculture & Farmers Welfare and the Ministry of Textiles.
Coverage: 140 districts across 14 states, involving 2,000 ginning/processing factories.
Production target: Increase cotton output to 498 lakh bales (170 kg each) by 2031.
Productivity target: Raise lint productivity from 440 kg/ha to 755 kg/ha.
Quality target: Reduce trash content in cotton to less than 2% and upgrade testing labs to global standards.
Brand promotion: “Kasturi Cotton Bharat” — premium, traceable Indian cotton brand.
Farmer outreach: Digital integration of mandis with e-platforms for ~32 lakh farmers.
Fibre diversification: Inclusion of flax, bamboo, banana, milkweed, and sisal.
Sustainability: Circular economy through cotton-waste recycling.

About the News (Q&A)

What is the Mission for Cotton Productivity?

A new national initiative to revive India’s cotton sector by raising productivity, improving quality, and integrating cotton with the broader textile value chain — from farm to finished fashion product to global markets.

What is the financial outlay of the Mission?

₹5,659.22 crore.

Which ministries are implementing it?

It is jointly implemented by the Ministry of Agriculture & Farmers Welfare and the Ministry of Textiles.

What is the geographical coverage of the Mission?

It targets 140 districts across 14 cotton-producing states, covering 2,000 ginning and processing factories.

What is the production target?

To increase cotton production to 498 lakh bales (each weighing 170 kg) by 2031.

What is the productivity target?

To raise lint productivity from the current 440 kg/hectare to 755 kg/hectare.

What is the 5F Vision?

A framework that links Farm → Fibre → Factory → Fashion → Foreign, aiming to integrate India’s cotton and textile economy from cultivation through to exports of finished apparel.

What kind of seeds will the Mission promote?

High-Yielding Variety (HYV), climate-resilient, and pest-resistant seeds, designed to minimise crop loss and boost yield.

What advanced farming techniques will be used?

High-Density Planting System (HDPS), Closer Spacing (CS), and Integrated Cotton Management practices to maximise yield per hectare.

What is “Kasturi Cotton Bharat”?

A government-promoted brand for premium, traceable, contamination-free Indian cotton, supported by digital traceability tools to enhance the global reputation of Indian cotton.

How will digital empowerment work for farmers?

Mandis (market yards) will be integrated with e-platforms for transparent price discovery and direct market access, benefiting around 32 lakh cotton farmers.

What does fibre diversification mean?

Promoting natural fibres beyond cotton — such as flax, bamboo, banana, milkweed, and sisal — to meet diverse global demands and reduce monocropping risks.

What is the role of circular economy in the Mission?

Recycling of cotton waste into new value streams (e.g., recycled fabrics, mulch, paper, byproducts) to reduce waste and environmental footprint.

Background Concepts (Q&A)

What is India’s position in global cotton production?

India is the world’s largest producer of cotton, contributing about a quarter of global production. Cotton is grown across roughly 130 lakh hectares, supporting around 60 lakh farmers and millions of jobs in the textile value chain.

What are the major cotton-producing states in India?

The top producers are Gujarat, Maharashtra, Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh, Haryana, Punjab, and Rajasthan.

What are the three cotton-growing zones in India?

Northern Zone (Punjab, Haryana, Rajasthan); Central Zone (Gujarat, Maharashtra, Madhya Pradesh); Southern Zone (Telangana, Andhra Pradesh, Karnataka, Tamil Nadu).

What is BT Cotton?

Bacillus thuringiensis (Bt) cotton is a genetically modified variety that produces a protein toxic to bollworm pests. Introduced in India in 2002, it covers over 90% of India’s cotton acreage and significantly boosted yields initially. However, pink bollworm resistance has emerged in recent years.

What is Pink Bollworm?

A devastating cotton pest (Pectinophora gossypiella) that has developed resistance to Bt cotton, causing significant yield losses, especially in Maharashtra and Gujarat — making pest-resistant seeds and Integrated Pest Management critical.

What is the Cotton Corporation of India (CCI)?

A central public sector undertaking under the Ministry of Textiles, set up in 1970. It procures cotton at Minimum Support Price (MSP) to protect farmers from distress sales and ensures availability of quality cotton to the domestic textile industry.

What is “lint” in cotton?

Lint refers to the long fibres of cotton harvested after ginning — the process that separates seeds from cotton fibres. Lint productivity is a key measure of cotton-sector efficiency.

What is “ginning”?

The process of separating cotton fibre (lint) from the seed. India has thousands of ginning units, but many use outdated technology, leading to higher trash and contamination levels.

What is the High-Density Planting System (HDPS)?

A modern cultivation technique that uses closer plant spacing and shorter-duration varieties to dramatically increase yield per unit area — widely used in countries with high cotton productivity.

What is the importance of cotton for India’s economy?

Cotton is the backbone of India’s textile and apparel industry — the second-largest employer after agriculture, contributing significantly to exports, manufacturing, and rural employment.

What is the Kasturi Cotton Bharat initiative?

Launched by the Ministry of Textiles, it is a self-branded Indian cotton initiative offering traceability, certification, and quality assurance to position Indian cotton as a premium global brand.

Practice MCQs

Q1. With reference to the Mission for Cotton Productivity, consider the following statements:

It has a total financial outlay of ₹5,659.22 crore.
It is jointly implemented by the Ministries of Agriculture & Farmers Welfare and Textiles.
It targets 140 districts across 14 states.
It aims to increase lint productivity from 440 kg/ha to 755 kg/ha.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. Consider the following statements about cotton production in India:

India is the world’s largest producer of cotton.
Bt Cotton was introduced in India in 2002.
The Cotton Corporation of India (CCI) functions under the Ministry of Agriculture.
Major cotton-producing states include Gujarat, Maharashtra, and Telangana.

Which of the above are correct? (a) 1, 2 and 4 only (b) 1, 3 and 4 only (c) 2 and 3 only (d) 1 and 4 only (e) All four

Q3. With reference to the 5F Vision, consider the following statements:

It stands for Farm to Fibre to Factory to Fashion to Foreign.
It aims at integrating India’s cotton and textile value chain end-to-end.
It is a vision framework promoted by the Government of India.
It applies exclusively to synthetic fibres.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 2 and 4 only (c) 2 and 4 only (d) 1 and 3 only (e) All four

Q4. Consider the following statements about the Kasturi Cotton Bharat initiative:

It is promoted by the Ministry of Textiles.
It is a self-branded initiative for Indian cotton.
It includes digital traceability and certification.
Kasturi Cotton is a genetically modified variety of cotton.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1 and 4 only (c) 2, 3 and 4 only (d) 1, 3 and 4 only (e) All four

Answer Key

(d) — All four statements are correct.
(a) — Statements 1, 2, 4 are correct. Statement 3 is wrong; the Cotton Corporation of India (CCI) functions under the Ministry of Textiles, not the Ministry of Agriculture.
(a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the 5F Vision is centred on cotton and natural fibres, not synthetic fibres.
(a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; Kasturi Cotton Bharat is a branding and traceability initiative, not a genetically modified cotton variety.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper III — Agriculture, Government Schemes, Cropping Patterns
UPSC Mains	GS Paper III — Agricultural Productivity, Marketing of Produce, Food Processing & Allied Industries
UPSC Mains	GS Paper II — Government policies and interventions
BPSC / State PCS	Agriculture, Indian Economy, Current Affairs
Banking (RBI Gr B, NABARD)	Agriculture & Rural Economy — high importance
SSC / Insurance / Railway	Static + Current GK on schemes, ministries, cotton
Geography Optional	Agricultural geography, cropping patterns
Agriculture / Forest Services exams	Core area — cotton cultivation, productivity, schemes

7. Emergency Credit Line Guarantee Scheme (ECLGS) 5.0

Source: PIB

Context:

The Union Cabinet has approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, the fifth iteration of a credit-guarantee framework first launched in May 2020 during the COVID-19 pandemic. While earlier versions targeted health-emergency-induced liquidity stress, ECLGS 5.0 is specifically designed to cushion MSMEs and scheduled passenger airlines from disruptions arising out of global geopolitical tensions — including supply-chain shocks, oil-price volatility, route disruptions in West Asia, and shipping risks in the Red Sea. Implemented through the National Credit Guarantee Trustee Company Limited (NCGTC), the scheme targets a total additional credit flow of ₹2,55,000 crore with 100% guarantee coverage for MSMEs and 90% for non-MSMEs and airlines. By insulating banks from default risk and waiving the guarantee fee, the government aims to ensure timely, low-cost working capital reaches sectors most exposed to external shocks — protecting jobs, supply chains, and operational continuity.

Key Highlights

Scheme: Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.
Purpose: Liquidity support to MSMEs and scheduled passenger airlines facing short-term mismatches due to global geopolitical tensions.
Total credit flow targeted: ₹2,55,000 crore.
Implementing agency: National Credit Guarantee Trustee Company Limited (NCGTC).
Guarantee coverage: 100% for MSMEs, 90% for non-MSMEs and airlines.
Eligibility: MSMEs and non-MSMEs with active working capital limits, and scheduled passenger airlines — provided accounts were Standard as of 31 March 2026.
Quantum of support:
- General: Up to 20% of peak Q4 FY 2026 working capital, capped at ₹100 crore per borrower.
- Airlines: Up to 100% of outstanding credit, capped at ₹1,500 crore per borrower.
Guarantee fee: Nil — waived by the government.
Loan tenor:
- MSMEs / Non-MSMEs: 5 years (1-year moratorium on principal).
- Airlines: 7 years (2-year moratorium on principal).
Scheme duration: Loans sanctioned from issue date till 31 March 2027.

About the News (Q&A)

What is ECLGS 5.0?

A specialised credit-guarantee scheme that provides 100% or 90% guarantee cover to banks and financial institutions, encouraging them to extend additional emergency credit to businesses facing short-term liquidity mismatches due to global geopolitical tensions.

What is the targeted credit flow under the scheme?

A total of ₹2,55,000 crore in additional credit, including ₹5,000 crore earmarked for the airline sector.

Who is the implementing agency?

The National Credit Guarantee Trustee Company Limited (NCGTC), which provides the guarantee to Member Lending Institutions (MLIs).

Who are the eligible borrowers?

MSMEs and non-MSMEs with active working capital limits, and scheduled passenger airlines — provided their accounts were classified as Standard as on 31 March 2026.

What is the extent of guarantee coverage?

100% for MSMEs and 90% for non-MSMEs and the airline sector — protecting lenders from the bulk of default risk.

What is the quantum of additional credit available?

For MSMEs and non-MSMEs: up to 20% of peak Q4 FY 2026 working capital, capped at ₹100 crore per borrower. For airlines: up to 100% of outstanding credit, capped at ₹1,500 crore per borrower.

Is there any guarantee fee?

No — the government has waived the guarantee fee that lenders would normally pay, making the credit cheaper for borrowers.

What is the loan tenor and moratorium?

MSMEs / Non-MSMEs: 5 years, including a 1-year moratorium on principal repayment. Airlines: 7 years, including a 2-year moratorium on principal repayment.

Until when is the scheme valid?

For loans sanctioned from the date of issue of the scheme guidelines until 31 March 2027.

Why is the airline sector treated separately?

Because airlines are highly capital-intensive, fuel-price sensitive, and exposed to overflight, route, and insurance disruptions during West Asia tensions and Red Sea shipping risks. Hence the higher cap, longer tenor, and longer moratorium.

Background Concepts (Q&A)

What is the original ECLGS, and when was it launched?

The Emergency Credit Line Guarantee Scheme was first launched in May 2020 as part of the Atmanirbhar Bharat package, to help MSMEs and other businesses tide over the liquidity crisis caused by the COVID-19 pandemic. ECLGS 5.0 (2026) is the first version triggered by a geopolitical rather than a pandemic crisis.

What is NCGTC?

The National Credit Guarantee Trustee Company Limited is a wholly-owned company of the Department of Financial Services, Ministry of Finance, set up in 2014 under the Companies Act. It acts as the trustee for several credit-guarantee funds, including the ECLGS.

What is a Credit Guarantee?

A credit guarantee is a promise by a third party (here, the government via NCGTC) to compensate a lender if a borrower defaults. It enables banks to extend loans to riskier borrowers (like MSMEs) without demanding heavy collateral.

Who are Member Lending Institutions (MLIs)?

MLIs include scheduled commercial banks, financial institutions, NBFCs, and small finance banks that participate in the scheme by extending guaranteed credit to eligible borrowers.

What is “working capital” in this context?

Working capital refers to short-term funds businesses need for day-to-day operations — paying suppliers, wages, inventory, and utilities. ECLGS 5.0 provides additional working capital linked to peak utilisation in Q4 FY 2026.

What is a “Standard Account”?

A loan account is “Standard” when the borrower is making timely repayments and the account is not classified as a Non-Performing Asset (NPA). Only borrowers with Standard accounts as of 31 March 2026 are eligible.

How are MSMEs defined currently?

Under the MSMED Act, 2006 (revised classification effective July 2020 and further updated in 2025), MSMEs are classified based on investment in plant & machinery and annual turnover, with revised upward thresholds to allow growing firms to retain MSME benefits.

Why is the airline sector strategically important?

Airlines support tourism, business travel, exports of perishables, and act as a crucial connectivity backbone. Sustained airline operations are key to maintaining trade, employment, and India’s connectivity to the world — particularly in periods of regional conflict.

What is “Atmanirbhar Bharat” in this context?

The “Self-Reliant India” mission, launched in 2020, aims to make India economically resilient through reforms across MSMEs, agriculture, infrastructure, and finance. ECLGS has been one of its flagship financial-resilience instruments.

What is the difference between guarantee fee and interest cost?

Guarantee fee is paid by the lender to the credit-guarantor (NCGTC) to obtain cover. Interest is what the borrower pays to the lender. By waiving the guarantee fee, the government keeps overall borrowing costs lower for end borrowers.

Practice MCQs

Q1. With reference to the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, consider the following statements:

The scheme provides 100% credit guarantee coverage for MSMEs.
It is implemented through the National Credit Guarantee Trustee Company Limited (NCGTC).
The total targeted additional credit flow is ₹2,55,000 crore.
The scheme is open to loans sanctioned up to 31 March 2027.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. Which of the following is/are correct regarding the airline sector provisions under ECLGS 5.0?

Guarantee coverage is 100% for airlines.
Loan tenor is 7 years including a 2-year moratorium.
The cap per airline borrower is ₹1,500 crore.
Airlines can avail credit up to 100% of outstanding credit.

Choose the correct option: (a) 1, 2 and 3 only (b) 2, 3 and 4 only (c) 1, 3 and 4 only (d) 2 and 4 only (e) All of the above

Q3. With reference to the eligibility under ECLGS 5.0, consider the following statements:

Borrowers must have Standard accounts as on 31 March 2026.
Eligible borrowers include MSMEs, non-MSMEs, and scheduled passenger airlines.
The guarantee fee is borne by the borrower.
For MSMEs/non-MSMEs, additional credit is capped at ₹100 crore per borrower.

Which of the above are correct? (a) 1, 2 and 4 only (b) 1, 3 and 4 only (c) 2 and 3 only (d) 1 and 4 only (e) All four

Q4. Consider the following statements about the original ECLGS and its iterations:

ECLGS was first launched in May 2020 as part of the Atmanirbhar Bharat package.
NCGTC is a wholly-owned company of the Department of Financial Services, Ministry of Finance.
ECLGS 5.0 is the first version of the scheme launched in response to a non-pandemic crisis.
Under ECLGS 5.0, the guarantee fee is waived entirely.

Which of the above are correct? (a) 1 and 2 only (b) 2, 3 and 4 only (c) 1, 2 and 4 only (d) 1, 3 and 4 only (e) All four

Answer Key

(d) — All four statements are correct.
(b) — Statements 2, 3, 4 are correct. Statement 1 is wrong; airlines get 90% guarantee coverage; 100% is reserved for MSMEs.
(a) — Statements 1, 2, 4 are correct. Statement 3 is wrong; the guarantee fee is Nil — waived by the government — so it is not borne by the borrower.
(e) — All four statements are correct.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper I — Indian Economy (Government schemes, banking sector)
UPSC Mains	GS Paper III — Indian Economy, MSME sector, Mobilisation of resources
UPSC Mains	GS Paper II — Government policies and interventions
BPSC / State PCS	Indian Economy, Current Affairs
Banking (RBI Gr B, SBI PO, IBPS, NABARD)	Financial Awareness, Banking & Economy — high importance
SEBI / IES	Credit guarantee mechanisms, MSME finance
SSC / Insurance / Railway	Static + Current GK on schemes, ministries, MSME

8. The National Crime Records Bureau (NCRB) released the Crime in India 2024 Report

Context:

The National Crime Records Bureau (NCRB) released the Crime in India 2024 report along with the Accidental Deaths & Suicides in India (ADSI) 2024 report. The data signals a mixed picture — while overall cognisable crime declined by 6% and crimes against Scheduled Castes and Scheduled Tribes also dropped, cybercrime surged by over 17% and “offences against the state” rose by 6.6%. The ADSI data reveals continuing distress in agriculture, daily-wage labour, and homemaking, with student and unemployed suicides remaining alarmingly high.

Key Highlights

Total cognisable crimes (2024): 58.86 lakh — down 6% from 2023.
Breakdown: 35.44 lakh under IPC/BNS; 23.41 lakh under special and local laws.
Cybercrime: 1,01,928 cases (up 17% from 86,420 in 2023). Fraud accounts for 72.6%, sexual exploitation 3.1%, extortion 2.5%.
Offences against the state: 5,194 cases (up 6.6% from 4,873). 84.6% under the Prevention of Damage to Public Property Act; 12.5% under UAPA.
Crimes against SCs: 55,698 cases — down 3.6%.
Crimes against STs: 9,966 cases — down 23.1%.
Total suicides (ADSI 2024): 1,70,746.
Agriculture-sector suicides: 10,546 (4,633 farmers/cultivators + 5,913 agricultural labourers) — 6.2% of total. Of farmer/cultivator suicides, 4,481 were men, 152 women.
Daily wagers: ~31% of all suicides.
Unemployed: 14,778; Students: 14,488; Homemakers: 22,113.
Drug-overdose deaths: 978 in 2024, up 50% from 650 in 2023.
Top 5 states by drug-overdose deaths: Tamil Nadu (313), Punjab (106), Madhya Pradesh (90), Rajasthan (69), Mizoram (65).

About the News (Q&A)

Which agency released the reports, and what are they called?

The National Crime Records Bureau (NCRB) released two annual reports — Crime in India 2024 and Accidental Deaths & Suicides in India (ADSI) 2024.

What is the overall trend in crime in 2024?

Total cognisable crime fell by 6% to 58.86 lakh cases. Of these, 35.44 lakh were registered under the IPC/BNS and 23.41 lakh under special and local laws.

How sharply did cybercrime rise?

Cybercrime cases rose by over 17%, from 86,420 in 2023 to 1,01,928 in 2024.

What are the major motives behind cybercrime?

Fraud accounted for 72.6% of cybercrime cases (73,987), followed by sexual exploitation at 3.1% (3,190 cases), and extortion at 2.5% (2,536 cases).

What is the trend in offences “against the state”?

Such offences rose by 6.6%, from 4,873 cases in 2023 to 5,194 in 2024. Of these, 84.6% were under the Prevention of Damage to Public Property Act and 12.5% under the Unlawful Activities (Prevention) Act (UAPA).

What does the data show for crimes against SCs and STs?

Crimes against SCs declined 3.6% (55,698 cases vs 57,789 in 2023). Crimes against STs declined sharply by 23.1% (9,966 cases vs 12,960 in 2023).

What does the ADSI 2024 report reveal about suicides?

A total of 1,70,746 suicides were recorded. Daily wagers accounted for around 31% of all suicides. Homemakers (22,113), unemployed persons (14,778), students (14,488), and the agriculture sector (10,546) made up substantial shares.

What is the breakdown of agriculture-sector suicides?

Of 10,546 agriculture-related suicides, 4,633 were farmers/cultivators and 5,913 were agricultural labourers — 6.2% of total suicides. Among farmers/cultivators, 4,481 were men and 152 women.

What is the trend in drug-overdose deaths?

Drug-overdose deaths rose 50% — from 650 in 2023 to 978 in 2024.

Which states had the highest drug-overdose deaths in 2024?

Tamil Nadu topped the list with 313 deaths, followed by Punjab (106), Madhya Pradesh (90), Rajasthan (69), and Mizoram (65).

Background Concepts (Q&A)

What is the National Crime Records Bureau (NCRB)?

The NCRB is an attached office of the Ministry of Home Affairs, set up in 1986 based on the recommendations of the Tandon Committee, the National Police Commission, and the MHA Task Force. It collects, compiles, and publishes crime statistics from across the country and maintains databases like CCTNS (Crime and Criminal Tracking Network and Systems).

What is the Crime in India report?

It is the NCRB’s flagship annual publication that compiles state and Union Territory data on cognisable crimes — including offences under the IPC/BNS and special and local laws — and serves as a key reference for policymakers, law enforcement, and researchers.

What is the Accidental Deaths & Suicides in India (ADSI) report?

An annual NCRB publication that compiles statistics on accidental deaths (road accidents, drowning, falls, etc.) and suicides across demographic and occupational categories.

What is a “cognisable offence”?

A cognisable offence is one in which the police can make an arrest without a warrant and start an investigation without prior approval of a magistrate. Examples include murder, rape, theft, and rioting.

What is the difference between IPC and BNS?

The Indian Penal Code (IPC), 1860 was the colonial-era criminal code in India. It has been replaced by the Bharatiya Nyaya Sanhita (BNS), 2023, which came into effect on 1 July 2024. The BNS modernises offences, redefines some categories (e.g., terrorism, organised crime), and removes obsolete provisions.

What is the Unlawful Activities (Prevention) Act (UAPA)?

A 1967 law that aims to prevent unlawful activities and terrorist activities. It empowers the central government to designate individuals and organisations as terrorists, allows extended detention without bail, and is the principal anti-terror law in India.

What is the Prevention of Damage to Public Property Act?

A 1984 law that punishes any act of damage to public property — including buildings, installations, and vehicles owned or used by the government — with imprisonment and fines. It is invoked frequently during protests, riots, and acts of vandalism.

What is “cybercrime” and what laws govern it in India?

Cybercrime refers to offences committed using computers, networks, or digital devices — including financial fraud, identity theft, online sexual exploitation, hacking, and ransomware. In India, it is governed primarily by the Information Technology Act, 2000 and relevant provisions of the BNS/IPC.

Why is drug-overdose data significant?

Drug-overdose deaths reflect the severity of the substance-abuse crisis. India’s vulnerability stems from its proximity to the “Golden Triangle” (Myanmar–Laos–Thailand) and the “Golden Crescent” (Afghanistan–Iran–Pakistan) — major opium-producing regions — and from rising synthetic drug trafficking.

Practice MCQs

Q1. With reference to the NCRB’s Crime in India 2024 report, consider the following statements:

The overall cognisable crime rate declined by 6% from the 2023 figure.
Cybercrime cases registered an increase of over 17%.
Crimes against Scheduled Tribes declined by 23.1%.
The majority of cybercrime cases were registered under the motive of sexual exploitation.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. Consider the following statements about offences against the state in the NCRB 2024 report:

A total of 5,194 such cases were registered, up 6.6% from 2023.
The Unlawful Activities (Prevention) Act (UAPA) accounted for the majority of these cases.
The Prevention of Damage to Public Property Act accounted for 84.6% of these cases.
The Prevention of Damage to Public Property Act was enacted in 1984.

Which of the above are correct? (a) 1, 3 and 4 only (b) 1, 2 and 4 only (c) 2 and 3 only (d) 1 and 4 only (e) All four

Q3. With reference to the National Crime Records Bureau (NCRB), consider the following statements:

It is an attached office of the Ministry of Home Affairs.
It was established in 1986.
It maintains the Crime and Criminal Tracking Network and Systems (CCTNS).
It functions under the Bureau of Police Research and Development (BPR&D).

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 2 only (e) All four

Q4. With reference to the ADSI 2024 report, consider the following statements:

A total of 1,70,746 suicides were recorded in 2024.
Daily wagers accounted for the highest share of suicides among all categories.
Tamil Nadu recorded the highest number of drug-overdose deaths.
Drug-overdose deaths declined in 2024 compared to 2023.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1 and 4 only (c) 2, 3 and 4 only (d) 1, 3 and 4 only (e) All four

Answer Key

(c) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the largest motive behind cybercrime was fraud (72.6%), not sexual exploitation (which was only 3.1%).
(a) — Statements 1, 3, 4 are correct. Statement 2 is wrong; the majority were under the Prevention of Damage to Public Property Act (84.6%), not UAPA (12.5%).
(a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; NCRB and BPR&D are both attached offices under the MHA, but NCRB does not function “under” BPR&D.
(a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; drug-overdose deaths increased 50% in 2024 (from 650 to 978).

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper I — Internal Security, Government bodies (NCRB), Laws (UAPA, BNS)
UPSC Mains	GS Paper II — Welfare of vulnerable sections (SC/ST), Governance
UPSC Mains	GS Paper III — Internal Security, Cybercrime, Drug trafficking, Agrarian distress
BPSC / State PCS	Internal Security, Current Affairs, Indian Polity
Banking (RBI Gr B, NABARD)	ESI / Economic and Social Issues — agrarian distress, unemployment data
SSC / Insurance / Railway	Static GK on NCRB, IPC/BNS, UAPA, MHA

Banking/Finance

1. Foreign Exchange Management (Authorised Persons) Regulations, 2026

Source: BS

Context:

The Reserve Bank of India (RBI) on 6 May 2026 released the Foreign Exchange Management (Authorised Persons) Regulations, 2026, fundamentally restructuring the way money-changing and foreign-exchange services are delivered in India. The two headline changes are: (a) RBI will no longer accept fresh applications for Full-Fledged Money Changers (FFMCs) — a category that has long served retail forex needs at airports, tourist hubs, and high-streets — and (b) all existing franchisee arrangements between Authorised Dealers/FFMCs and third-party outlets must be wound down or transitioned to a new Forex Correspondent (FxC) framework within two years. RBI has also introduced a three-tier Authorised Dealer (AD) classification — AD Category I, II, and III — including a new AD Category III for entities offering forex services tied to their core business (such as fintechs and travel platforms).

Key Highlights

Regulation: Foreign Exchange Management (Authorised Persons) Regulations, 2026, issued by RBI under FEMA, 1999.
No fresh FFMC licences: RBI will not consider new applications for Full-Fledged Money Changers; only those already under process as of the regulation’s effective date will be considered.
Franchisee model phased out: All existing franchisee arrangements with third-party outlets must be discontinued or transitioned to the new Forex Correspondent (FxC) framework within two years.
New three-tier AD structure:
- AD Category I — banks/large entities authorised for the widest range of forex transactions.
- AD Category II — entities authorised for specified forex activities, including remittances and money changing.
- AD Category III — new category for entities offering forex services as part of their underlying business (e.g., travel, fintech).
Underlying objective: Rationalise authorisation and renewal, extend the principal-agent model for forex delivery, and strengthen checks and balances.
Wider context: Aligns retail forex regulation with India’s expanding outbound travel, e-commerce, and digital remittance needs.

About the News (Q&A)

What did the RBI announce?

The release of the Foreign Exchange Management (Authorised Persons) Regulations, 2026, which restructure the framework for money changers and authorised dealers in foreign exchange.

What is the key change for FFMCs?

The RBI will no longer accept fresh applications for Full-Fledged Money Changer (FFMC) licences. Only applications already under process as on the date of effect will be considered.

What happens to franchisee arrangements?

The new rules prohibit any fresh franchisee arrangements. Existing arrangements must either be wound down or transitioned to the new Forex Correspondent (FxC) framework within two years.

What is a franchisee arrangement in money changing?

It is a tie-up where Authorised Dealers (ADs) or FFMCs appoint third-party outlets — like travel agencies, retailers, or local agents — to carry out money-changing activities on their behalf, typically to extend their retail reach.

What is the new three-tier AD structure?

The earlier classification has been replaced with a clearer three-tier framework: AD Category I, AD Category II, and a newly created AD Category III.

What is AD Category III?

A new class of authorised persons created to permit entities — such as fintechs, travel companies, and digital platforms — that undertake forex transactions as part of their core business or offer forex-linked products. RBI will specify the permitted activities for this category.

Why has RBI made these changes?

To rationalise the authorisation and renewal framework, extend the principal-agent model for delivery of forex services, and strengthen oversight and accountability — all while accommodating new business models in India’s expanding retail forex market.

What does the principal-agent model mean here?

It means a clearly tiered system where larger, regulated entities (principals like AD-I banks) take responsibility for forex transactions undertaken by smaller, agent-like entities (such as FxCs or AD-II/III), ensuring traceable accountability.

Will retail customers be affected?

Not in the short term. Existing FFMCs continue to operate, and franchisee arrangements have a 2-year transition window. Over time, the channel structure will shift from FFMCs and franchisees to AD-banks and FxCs, with greater regulatory standardisation.

Background Concepts (Q&A)

What is FEMA?

The Foreign Exchange Management Act, 1999 governs all foreign-exchange transactions in India. It replaced the earlier Foreign Exchange Regulation Act (FERA), 1973 and shifted India’s forex regime from “control” to “management,” in line with liberalisation.

Who are “Authorised Persons” under FEMA?

Persons authorised by RBI under Section 10 of FEMA to deal in foreign exchange or foreign securities. They include Authorised Dealers (ADs), money changers, and offshore banking units.

What is a Full-Fledged Money Changer (FFMC)?

An entity authorised by the RBI to undertake the purchase and sale of foreign currency notes, coins, and travellers’ cheques from residents and non-residents — typically used by tourists, NRIs, and small forex remitters.

What is the difference between AD Category I, II, and III?

AD Category I: Mostly commercial banks; authorised for the broadest range of forex transactions, including current and capital account. AD Category II: Entities (such as cooperative banks, urban banks, and select financial firms) authorised for specific transactions like remittances under LRS, money changing, etc. AD Category III (new): Entities offering forex services as part of their underlying business, such as travel platforms or fintechs.

What is a Forex Correspondent (FxC)?

A new channel envisaged by RBI to replace the franchisee model — an agent-like entity that operates under a regulated principal (AD bank), with clearer accountability and consumer-protection standards.

What is the Liberalised Remittance Scheme (LRS)?

An RBI scheme that allows resident individuals to remit up to USD 250,000 per financial year abroad for permitted current and capital account transactions, including investment, education, travel, and gifts.

Why is retail forex regulation evolving now?

Because India’s outbound travel, education abroad, e-commerce, fintech, and cross-border remittance volumes have grown rapidly — requiring a more flexible, technology-friendly, and accountable forex distribution framework.

What is the principal-agent model in financial regulation?

A regulatory framework where a regulated principal (e.g., a bank) takes responsibility for the actions of an agent (e.g., a correspondent or franchisee), ensuring that customers deal with a clearly accountable entity even if the front-end interaction is with a smaller agent.

Why has RBI tightened oversight on money changing?

Because money-changing activities are vulnerable to money laundering, hawala, and unreported cross-border flows. A streamlined, traceable, and tiered framework helps strengthen anti-money laundering (AML) and counter-terror-financing (CFT) norms.

Practice MCQs

Q1. With reference to the RBI’s Foreign Exchange Management (Authorised Persons) Regulations, 2026, consider the following statements:

The RBI will not consider fresh applications for Full-Fledged Money Changers (FFMCs).
Existing franchisee arrangements must be wound down within two years.
A new AD Category III has been introduced for entities offering forex as part of their underlying business.
The new framework abolishes Authorised Dealer Category I.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. Consider the following statements about Authorised Dealer (AD) categories under the new framework:

AD Category I is mostly comprised of commercial banks.
AD Category II handles a limited set of forex transactions including LRS remittances.
AD Category III is a newly created category in 2026.
AD Category III entities can undertake forex activities only with prior approval from SEBI.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1 and 4 only (c) 2, 3 and 4 only (d) 1, 3 and 4 only (e) All four

Q3. Consider the following statements about FEMA and forex regulation in India:

FEMA, 1999 replaced FERA, 1973.
FEMA shifted India’s forex regime from “control” to “management.”
The RBI is the implementing authority for FEMA in matters relating to current and capital account transactions.
The Liberalised Remittance Scheme (LRS) currently permits resident individuals to remit up to USD 250,000 per financial year.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 2 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q4. With reference to money-changing activities in India, consider the following statements:

Full-Fledged Money Changers (FFMCs) are authorised to buy and sell foreign currency notes, coins, and travellers’ cheques.
Franchisee arrangements allow ADs and FFMCs to appoint third-party outlets for money-changing activities.
The new “Forex Correspondent (FxC)” framework is intended to replace the franchisee model.
SEBI is the primary regulator for money changers in India.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Answer Key

(c) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the new framework retains and clarifies AD Category I, II, and III — it does not abolish Category I.
(a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; AD Category III is regulated by RBI, not SEBI; SEBI does not authorise AD activities.
(e) — All four statements are correct.
(a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the RBI (under FEMA), not SEBI, is the primary regulator for money changers.

Exam Relevance

Exam	Relevance
Banking (RBI Gr B, SBI PO, IBPS, NABARD)	Financial Awareness, Forex Regulations — high importance
SEBI Grade A	Adjacent area — capital flows, regulatory architecture
SSC / Insurance / Railway	Static GK on RBI, FEMA, LRS, FFMC

2. PhonePe’s AI-Driven Merchant Onboarding

Source: BS

Context:

Fintech major PhonePe has introduced a first-of-its-kind AI-powered integration layer designed to revolutionize the way merchants adopt payment gateways (PG). Traditionally, integrating a payment system into a business website or app was a technical bottleneck, often taking weeks of manual coding and debugging. By leveraging a proprietary Integration Intelligence layer and AI coding assistants, PhonePe has transformed this complex technical phase into a conversational process that can be completed in minutes.

Key Highlights

AI Integration Agent: A conversational interface that understands the nuances of payment systems rather than just generating generic code.
Proprietary Technology: Built on PhonePe’s “Integration Intelligence” layer, optimized for AI coding assistants.
Scale: The tool serves a platform with over 700 million registered users.
Target Audience: Specifically designed to help merchants (small and large) go live with payment gateways faster.

News Analysis

Q1: What is the “Integration Intelligence” layer mentioned by PhonePe?

A: It is a proprietary software layer that acts as the “brain” for the AI. While standard AI can write code, this layer ensures the AI understands the specific logic, security protocols, and compliance requirements of the payment industry, reducing errors during the merchant’s onboarding process.

Q2: How does a conversational interface help a merchant integrate a Payment Gateway?

A: Instead of reading through hundreds of pages of API documentation, a developer or merchant can “chat” with the AI agent. They can describe their platform (e.g., “I use React and want to add UPI and Credit Cards”), and the AI provides the exact, ready-to-use code snippets and configuration steps.

Q3: Why was “integration” historically the longest phase for merchants?

A: Payment integration involves handling sensitive financial data, ensuring security (encryption), managing various payment methods (UPI, Cards, Wallets), and testing for success/failure callbacks. This complexity required back-and-forth communication between the merchant’s tech team and the PG provider.

Background Concepts

Q1: What is a Payment Gateway (PG)?

A: A Payment Gateway is a technology that captures and transfers payment data from the customer to the acquirer (bank) and then transfers the payment acceptance or decline information back to the customer. It acts as the “checkout counter” for an online store.

Q2: What are AI Coding Assistants?

A: These are tools (like GitHub Copilot or ChatGPT) that suggest code or complete entire blocks of code based on natural language prompts. PhonePe’s tool “layers” its own intelligence on top of these assistants to make them experts in the PhonePe ecosystem.

Q3: What does “Onboarding” mean in Fintech?

A: Onboarding is the process of bringing a new customer or merchant onto a platform. For merchants, this involves KYC (Know Your Customer) verification, account setup, and the technical integration of the payment software.

Multiple Choice Questions (MCQs)

1. What is the primary objective of PhonePe’s new AI tool?

A) To increase the number of UPI transactions

B) To reduce payment gateway integration time for merchants

C) To provide loans to small businesses

D) To replace the need for customer support

E) To encrypt 5G networks

2. PhonePe’s AI agent is built on top of which proprietary technology?

A) Blockchain Ledger

B) Integration Intelligence layer

C) Quantum Security shield

D) Neural Payment Network

E) Open Source Linux Kernel

3. According to CTO Rahul Chari, the tool collapses the integration timeline from weeks to:

A) Days

B) Hours

C) Minutes

D) Seconds

E) Months

4. How many registered users does PhonePe currently have?

A) 100 million

B) 350 million

C) 500 million

D) 700 million

E) 1 billion

Answers: 1-B, 2-B, 3-C, 4-D

Facts To Remember

1. Guillermo Cano World Press Freedom Prize 2026

UNESCO has awarded the 2026 UNESCO/Guillermo Cano World Press Freedom Prize to the Sudanese Journalists Syndicate.

2. India and Algeria Hold First Joint Defence Commission Meeting

India and Algeria held their inaugural Joint Defence Commission meeting in New Delhi to strengthen bilateral defence cooperation. The meeting was co-chaired by Amitabh Prasad from India and Major General Kaid Nour Eddine from Algeria. Both countries signed the Rules of Procedure to institutionalise and guide future defence collaboration. Key focus areas include military training, joint exercises, medical cooperation, and defence industry engagement under India’s expanding defence diplomacy and Atmanirbhar Bharat initiative.

3. Dharmendra Pradhan Launches School Management Committee Guidelines 2026

Union Education Minister Dharmendra Pradhan launched the School Management Committee (SMC) Guidelines 2026 on 6 May 2026. The guidelines aim to strengthen community participation, improve school infrastructure, and enhance pedagogical practices in schools. The initiative aligns with the objectives of the National Education Policy (NEP) 2020 for inclusive and participatory education governance. It also seeks to promote accountability, local involvement, and better learning outcomes in the school education system.

4. Union Cabinet Approves Two Semiconductor Units under ISM 1.0

The Union Cabinet approved two semiconductor projects worth Rs 3,936 crore under India Semiconductor Mission (ISM) 1.0. The projects include India’s first commercial GaN-based Mini/Micro-LED display facility and a semiconductor packaging unit in Gujarat. These projects are expected to generate over 2,230 skilled jobs and strengthen India’s semiconductor ecosystem. The approvals mark the final projects sanctioned under the Rs 76,000 crore ISM 1.0 programme.

5. Union Cabinet Approves ECLGS 5.0 with Rs 18,100 Crore Outlay

The Cabinet approved ECLGS 5.0 to provide liquidity support to MSMEs affected by the West Asia crisis. The scheme offers 100% guarantee coverage for MSMEs and 90% for non-MSMEs and airlines through NCGTC. Eligible borrowers must have standard loan accounts as of March 31, 2026. The initiative aims to strengthen credit flow and business continuity during economic stress.

6. Cabinet Committee on Economic Affairs Clears Major Infrastructure and Railway Projects

CCEA approved several projects including a Rs 1,570 crore ship repair facility in Gujarat and Rs 23,437 crore railway expansion works. Three railway multi-tracking projects across six states were sanctioned to improve freight and passenger movement. The Cabinet also approved increasing Supreme Court judge strength from 33 to 37 excluding the CJI. These decisions aim to improve infrastructure, logistics, and judicial efficiency.

7. Ministry of Finance Reports Strong Credit Growth in FY26

Scheduled Commercial Banks recorded 15.9% year-on-year non-food credit growth during FY26. Agriculture credit grew by 15.7%, industrial credit by 15%, and services sector lending by 19%. The data indicates improved rural demand, industrial expansion, and strong economic activity. The robust credit growth reflects strengthening banking sector confidence and lending momentum.

8. Department for Promotion of Industry and Internal Trade Sets Faster FDI Clearance Timeline

DPIIT introduced a revised SOP providing 60-day clearance for FDI proposals from neighbouring countries in 40 identified sub-sectors. These sectors include rare earth magnets, PCBs, advanced batteries, and polysilicon manufacturing. The framework applies to investments from countries sharing land borders with India. The move aims to accelerate strategic investments while maintaining regulatory oversight.

9. Ministry of Health and Family Welfare Launches RBSK 2.0 Guidelines

MoHFW launched RBSK 2.0 guidelines to strengthen child healthcare services under NHM. The updated framework expands the 4Ds model by adding screening for mental health and non-communicable diseases. It introduces digital health cards and real-time monitoring systems for better healthcare delivery. The programme ensures continuous healthcare support from birth to adolescence.

10. Ministry of Defence Signs Rs 1,476 Crore Deal with BEL

The Ministry of Defence signed a contract with BEL for five Ground-Based Mobile Electronic Systems for the Indian Army. The systems provide ELINT, COMINT, and counter-drone capabilities in tactical operations. Developed by DRDO’s DLRL, the systems contain over 72% indigenous content. The procurement strengthens India’s defence modernisation and self-reliance goals.

11. Unique Identification Authority of India Signs Cybersecurity Pact with NFSU

UIDAI and NFSU signed a five-year MoU to enhance cybersecurity and digital forensic capabilities for Aadhaar infrastructure. The partnership focuses on AI-based anomaly detection, blockchain, deepfake detection, and cryptographic research. It also includes training, technical support, and capacity-building initiatives. The collaboration aims to strengthen India’s digital identity security ecosystem.

12. NLC India Limited Partners with EDF France for Nuclear Technologies

NLC India signed an agreement with EDF France to explore nuclear projects using EPR and SMR technologies. The collaboration supports India’s target of achieving 100 GW nuclear power capacity by 2047. The partnership focuses on advanced, modular, and safer nuclear reactor systems. It aligns with India’s clean energy transition and net-zero goals.

13. NITI Aayog Launches Central Prabhari Officer Portal

NITI Aayog launched the CPO Portal to improve real-time governance under Aspirational Districts and Blocks Programmes. The platform allows officers to upload field observations and implementation issues instantly. It enhances coordination among Centre, State, and district administrations for faster corrective action. The initiative promotes technology-driven and accountable governance.

14. Subrahmanyam Jaishankar Visits Jamaica on Historic Bilateral Tour

External Affairs Minister S. Jaishankar visited Jamaica for the first-ever bilateral visit by an Indian EAM. The visit focused on healthcare, digitalisation, agriculture, sports, and infrastructure cooperation. India and Jamaica signed MoUs on health, broadcasting, and solarisation projects. The visit strengthened India-Caribbean ties and South-South cooperation.

15. International Organization for Migration Releases World Migration Report 2026

The IOM reported that India remained the world’s top remittance recipient with over USD 137 billion in 2024. The USA continued as the largest remittance-sending country globally. Mexico, the Philippines, France, and Pakistan followed India among top recipients. The report highlights the growing importance of global migration and remittance flows.

16. Jio Payments Bank Partners with Ezeepay for Rural Banking Access

Jio Payments Bank partnered with Ezeepay to expand digital banking services in rural and semi-urban India. The collaboration enables AEPS-based cash withdrawal, deposit, and UPI cash withdrawal services. Ezeepay merchants will function as banking correspondents to improve last-mile financial access. The initiative supports financial inclusion and digital banking penetration.

17. International Day of the Midwife Observed on May 5, 2026

International Day of the Midwife recognises the vital role of midwives in maternal and newborn healthcare. The 2026 theme was “One Million More Midwives.” The observance raises awareness about the global shortage of trained midwives. It was first celebrated in 1991 following a proposal by the International Confederation of Midwives.

18. World Hand Hygiene Day Observed on May 5, 2026

World Hand Hygiene Day promotes proper hand hygiene practices to prevent infections and improve patient safety. The 2026 theme was “Action saves lives– Safer care starts with clean hands.” The campaign aligns with WHO’s “SAVE LIVES: Clean Your Hands” initiative launched in 2009. The observance highlights global infection prevention efforts.

19. World Cartoonist Day Observed on May 5, 2026

World Cartoonist Day honours cartoonists for their contributions to art, humour, and social commentary. The day commemorates the debut of Hogan’s Alley and The Yellow Kid in 1895. It was officially initiated in 1999 by the National Cartoonists Society. The observance celebrates the influence of cartoons in media and culture.

20. Nagaland Launches 100 Days Ayushman Student Coverage Mission

Nagaland launched the ‘100 Days Ayushman Student Coverage Mission’ to expand healthcare coverage among students. The initiative extends benefits under AB-PMJAY and the state CMHIS scheme. Registration and card generation camps will be conducted in schools and colleges across the state. The mission aims to ensure universal student health protection and improved healthcare access.

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PhonePe’s AI-Driven Merchant Onboarding

Foreign Exchange Management (Authorised Persons) Regulations, 2026

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Daily Current Affairs (DCA) 07 May, 2026

National Affairs

1. Understanding Inequality in India’s Growth Story

Key Highlights of the Report

News Analysis

Background Concepts

Multiple Choice Questions (MCQs)

Exam Relevance

2. Discovery of Atmosphere on TNO (612533) 2002 XV93

Key Highlights

Background Concepts

Multiple Choice Questions (MCQs)

Exam Relevance

3. Incentive Scheme for Promotion of Critical Mineral Recycling

About the News

Background Concepts

4. National Critical Mineral Mission (NCMM)

5. Supreme Court (Number of Judges) Amendment Bill, 2026

6. Mission for Cotton Productivity

7. Emergency Credit Line Guarantee Scheme (ECLGS) 5.0

8. The National Crime Records Bureau (NCRB) released the Crime in India 2024 Report

Banking/Finance

Key Highlights

News Analysis

Background Concepts

Multiple Choice Questions (MCQs)

Facts To Remember

1. Guillermo Cano World Press Freedom Prize 2026

2. India and Algeria Hold First Joint Defence Commission Meeting

3. Dharmendra Pradhan Launches School Management Committee Guidelines 2026

4. Union Cabinet Approves Two Semiconductor Units under ISM 1.0

5. Union Cabinet Approves ECLGS 5.0 with Rs 18,100 Crore Outlay

6. Cabinet Committee on Economic Affairs Clears Major Infrastructure and Railway Projects

7. Ministry of Finance Reports Strong Credit Growth in FY26

8. Department for Promotion of Industry and Internal Trade Sets Faster FDI Clearance Timeline

9. Ministry of Health and Family Welfare Launches RBSK 2.0 Guidelines

10. Ministry of Defence Signs Rs 1,476 Crore Deal with BEL

11. Unique Identification Authority of India Signs Cybersecurity Pact with NFSU

12. NLC India Limited Partners with EDF France for Nuclear Technologies

13. NITI Aayog Launches Central Prabhari Officer Portal

14. Subrahmanyam Jaishankar Visits Jamaica on Historic Bilateral Tour

15. International Organization for Migration Releases World Migration Report 2026

16. Jio Payments Bank Partners with Ezeepay for Rural Banking Access

17. International Day of the Midwife Observed on May 5, 2026

18. World Hand Hygiene Day Observed on May 5, 2026

19. World Cartoonist Day Observed on May 5, 2026

20. Nagaland Launches 100 Days Ayushman Student Coverage Mission

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